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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Accounting Irregularities

Electronic Data Systems agreed to pay $490,902 in disgorgement and prejudgment interest to settle a Securities and Exchange Commission investigation into alleged accounting irregularities that occurred from 2001 to 2003. According to the SEC, EDS failed to disclose, or selectively disclosed, the cost of certain derivatives contracts, failed to adequately disclose an extraordinary transaction with a major customer that increased its reported cash flow by $200 million, and maintained inaccurate books and records. The latter charge partly involved the conduct of the Indian office of former EDS subsidiary A.T. Kearney, Inc., whose president was alleged to have paid bribes to senior employees of Indian state-owned companies between 2001 and 2003 to retain their business. EDS neither admitted nor denied wrongdoing. See related Electronic Data Systems misconduct instance, “SEC v. Srinivasan (A.T. Kearney India Bribes).”

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Settlement
9/25/2007
Contractors Involved Penalty
Total
Electronic Data Systems $490,902
Further Information Released
SEC Order 10/3/2007
SEC Press Release 10/3/2007

See also:

Federal Contractor Misconduct Database